Neyfong v. Wells
Neyfong v. Wells
Opinion of the Court
delivered the following opinion of the court: — -'I'he writ and declaration are in the name of
The first and principal question, is, was the action on covenant, for the conveyance of land, sustainable in the name of the assignor, to the use of the assignee ?
If this obligation is not within the act of 1798, permitting the assignments of writings
The statute declares, that all bonds, bills, and promissory notes, whether for money or property, shall be assignable ; and it shall and may be lawful for the as-signee of any such bond, bill, or note, to sue for the same, in the same manner the original obligee or payee might or could do.
That obligations for the conveyance of land, are assignable by virtue of the statute, was decided in the case of Conn vs. Jones, April term 1805
Upon general principles, it seems that the plaintiff at law ought to show a right, or title, or some property in the thing sued for. In respect to bonds, it seems well settled, that one who has a bare equitable interest by assignment, cannot maintain an action in his own name ; the legal right and ownership being in another — 1 Dal
This decision, upon appeal to the supreme court of the United States, was affirmed. But what if the assignment had been of a bond, where the transfer would have been complete, at law ; and not of an account, which was. assignable in equity only. The special reason given for overruling the motion, seems very strongly to imply*, that in such case the decision would have been different.
If in the case of an assignment, not permitted or executed by the statute, so as to transfer the legal right to (he assignee, in the thing assigned, the suit must be brought in the name of the assignor; because the legal right is in him, notwithstanding the equitable right is in the assignee ; it seems to follow, afortiori, that the as. signor, who. has neither the legal npr equitable ownership in the thing assigned, cannot maintain an action upon such assigned instrument. The ownership of the obligee, of an instrument assignable and negotiable by the statute, is gone by the assignment, and, transfered, to the assignee. The assignor is no trustee to the use of the assignee ; he has nothing to hold for the use of another ; the assignee has the complete legal and equitable ownership, which can be transfered or re-assigned, only,, by another assignment, or by cancelling the first. The statute creates a privity of contract between,the obligor and assignee, as complete as that which existed between obligor and obligee ; saving all discounts against the as. signor, before the obligor has notice of the assignment.. The assignor, then, who sets out an assignment made to another, shews a clear want of right in himself, to uphold his suit ; and his naming himself as trustee, cannot help.
It may be said that the words of the statute are not compulsory, but only permissive ; that the assignee may sue in his own name. But the statute does not say that, the assignor may nevertheless sue in his qwn name ; and therefore, the general principle applies, that he who sues, must have right. It is not enough, that the defendant is in the wrong; that wrong must be to the injury of the plaintiff,
■ We cannot perceive that any mischief can result from, requiring the real owner to bring his suit, and stand bound for the consequences. But great frauds and inconvenience mast result from the introduction of a mere nominal plaintiff, who may, or may not be responsible for costs, arid yet protect the real plaintiff from paying the several officers of the courts of justice, and in fact, lay the foundation for the circulation of bonds and notes, payable to bearer, by introducing the name of a fictitious payee, who shall sue to the use of the last holder of the paper.
It seems to the court, that the assignor of a bond, negotiable by the statute, is not competent to sue in his, o wn name, to the use of the assi gnee.
Judgment reversed.
«) i Sss. of 17fo’ Cl>" *7’
⅜) Anu%.
Afb of I79*-7i p. 3».
Case-law data current through December 31, 2025. Source: CourtListener bulk data.